FAC Explorer

Audit 292663

FY End
2023-06-30
Total Expended
$11.08M
Findings
2
Programs
2
Organization: The Housing Authority of the City of Winder Georgia (GA)
Year: 2023 Accepted: 2024-02-28
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
371004 2023-001 Material Weakness - E
947446 2023-001 Material Weakness - E

Programs

ALN Program Spent Major Findings
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $9.40M Yes 0
14.195 Section 8 Housing Assistance Payments Program $1.68M Yes 1

Contacts

Name Title Type
DDJ8JGZKMZ21 Michelle Yawn Auditee
7708677495 Eric Rumberger Auditor
No contacts on file

Notes to SEFA

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Housing Authority of the City of Winder, Georgia (the "Authority"), under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. The federal expenditures included under the Section 8 Housing Assistance Payments Program are included in Net Tenant Rental Revenue on the accompanying Financial Data Schedule. Expenditures reported on the Schedule are presented using the accrual basis of accounting. Such expenditures are recognized in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority has received a U.S. Department of Housing and Urban Development direct loan under Section 221(d)(4) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2023 was $9,260,238

Finding Details

Finding 2023-001
Criteria Management is responsible for using the EIV system in accordance with the requirements of HUD handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Statement of Condition During the procedures applied to a statistically valid sample of 33 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding the use of the Enterprise Income Verification ("EIV") system. See details below: 1. Three instances where the Project did not obtain the required forms for new tenants from the EIV system within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System. 2. Four instances where the Project did not obtain the required forms from the EIV system before the required recertification date for existing tenants. Cause The project failed to follow the policies and procedures which have been established for proper use of the EIV system in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD Guidelines could result in errors in the rent subsidies paid by HUD. Questions Costs $0 Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the use of the EIV system is in accordance with guidelines specified by HUD. Finding Resolution Status: Completed Reporting Views of Responsible Officials The AUthority agrees with the finding. The Authority has previously established procedures that will be reinforced with our management and compliance personnel to ensure proper use of the EIV system.
Finding 2023-001
Criteria Management is responsible for using the EIV system in accordance with the requirements of HUD handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Statement of Condition During the procedures applied to a statistically valid sample of 33 tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding the use of the Enterprise Income Verification ("EIV") system. See details below: 1. Three instances where the Project did not obtain the required forms for new tenants from the EIV system within 90 days of the tenant being entered into the Tenant Rental Assistance Certification System. 2. Four instances where the Project did not obtain the required forms from the EIV system before the required recertification date for existing tenants. Cause The project failed to follow the policies and procedures which have been established for proper use of the EIV system in accordance with HUD guidelines. Effect or Potential Effect Noncompliance with HUD Guidelines could result in errors in the rent subsidies paid by HUD. Questions Costs $0 Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the use of the EIV system is in accordance with guidelines specified by HUD. Finding Resolution Status: Completed Reporting Views of Responsible Officials The AUthority agrees with the finding. The Authority has previously established procedures that will be reinforced with our management and compliance personnel to ensure proper use of the EIV system.